India pushes to formalize impact investments

New Delhi: Putting in money for social development is believed to be the responsibility of either the government—as part of the welfare for its citizens—or charitable rich individuals and institutions.

But industry body Impact Investors Council (IIC) suggests otherwise. Keen to create a formal industry for impact investments, IIC has submitted recommendations to the finance ministry advocating recognition of impact investing as a separate asset class ahead of India’s first impact investor conclave to be held in November later this year.

Impact investment deals with funding for businesses, organizations and institutions that want to make a positive social or environmental change, while also assuring financial returns for investors.